Gold slips as higher Treasury yields offset focus on Warsh's inflation message
GLD•Other precious metals
"The yellow metal is likely to drift back toward $3,900 per ounce as oil remains under pressure to move even higher through the summer," analysts at TD Securities said in a note.
Spot silver XAG= fell 0.3% to $57.49 per ounce and platinum XPD= fell 1% to $1,595.38. Palladium XPT= rose 0.7% to $1,255.67.
Gold eases as Treasury yields rise
Gold prices slipped on Thursday, pressured by higher U.S. Treasury yields, while markets assessed comments from Federal Reserve Chairman Kevin Warsh on tackling inflation after the central bank left its interest rates unchanged this week.
Spot gold XAU= was down 0.5% at $4,045.59 per ounce, as of 0714 GMT, after rising as much as 2% in the previous session. U.S. gold futures GCcv1 for August delivery gained 0.2% to $4,043.70.
Yields on the benchmark 10-year U.S. Treasury note US10YT=RR climbed, increasing the opportunity cost of holding bullion.
"Yields are a byproduct of the rate expectations, and if market expects that inflation fears will translate into higher rates, yields will be higher," and this is pressuring gold, ANZ analyst Soni Kumari said.
Fed policy, inflation data and geopolitics remain in focus
A divided Federal Reserve left interest rates unchanged on Wednesday while Warsh reaffirmed the central bank's commitment to bringing inflation under control, leaving markets uncertain about its next policy move.
